What Are The Objectives Of The World Bank

more bank financing? What major developments between November 1978 and August 1979 contributed to this situation?

World Bank primarily loans money to countries that need short-term credit to shore-up their economies.

more bank financing? What major developments between November 1978 and August 1979 contributed to this situation?

According to Robert Cox, global financial organizations give out loans to poor countries. What is the real goal of these financial policies?

world was credit. In 1924, after a sharp decline in business, the Reserve banks suddenly cre­ated some $500 million in new credit, which led to a bank credit expansion of over $4 billion in less than one year. The initial impact this new expansion of national credit was in the short term beneficial to the economy, but the end result was catastrophic. It was the begin­ning of a monetary policy that led to the stock market crash in 1929 and the following depression. As our Government did not realize the mistake they have made; this lead to global declines in consumer demand, credit was a key when it came to borrowing money from banks. As less banks loaned money, afraid that their would not be any return on their loans. Less people had money, which lead other economies to fail because their consumers did not have any money for consumer goods. Furthermore, financial panics worldwide caused even more panic as governmental policies caused economic and global market output to fall.

is accomplished through loans to struggling countries. In addition to the World Bank, the International Finance Corporation was annexed to provide loans to corporations who are seen to help aide in poor countries’ development. These three organizations

My work experience as a World Bank employee in 2014 solidified my interest in developing a career with the bank. I worked with three senior economists in the Development Economics Research Group on a research paper about the effect of long-term financing on economic growth for the Global Financial Development Report 2015. My stay with the World Bank was truly exciting for me because I learnt first-hand how the bank’s culture and operations, as well as

One major complaint about the World Bank is that it causes high debt in developing countries. Even though the loans are meant to help these countries, they end up causing the countries to take on debt that they must pay interest on and remain under the conditions of the institution. Another is that as part of their lending requirements; the World Bank has imposed rigorous conditions on recipient countries. These requirements are known as structural adjustment programs. These programs force countries to adopt their conditions, such as deregulation of capital markets, reformation of national companies to private corporations, and downscaling of social welfare programs. Privatization of water supplies and public pensions, and imposing fees for public hospitals and publics schools are among the debated bank reforms. In his book, 50 Years Is Enough, Kevin Danaher describes the World Bank's policies as "austerity plans that 'reform' economic policies by suffocating the poor and inviting

These are national or regional financial institution designed to provide medium- and long-term capital for productive investment, often accompanied by technical assistance, in poor countries.

The Bretton Woods Conference in 1944 spawned two IFIs, the International Monetary Fund (IMF) and the World Bank, in order to rebuild a

Here the International Monetary Fund and the International Bank for Reconstruction and Development, later divided into the World Bank and Bank for International Settlement, were established. To regulate the international policy economy these institutions become known as the Bretton Woods institutions and became operational in 1946. The IMF, founded to stabilize countries' currencies in relation to each other, holds money in trust, which member countries can borrow according to terms set by the institution. The World Bank instead gives more long-term loans and sells bonds to corporations and governments, which bind the issuer to pay the bondholder the amount of the loan plus interest. However, the countries taking advantage of the opportunity to borrow money to improve their affected economy are obliged to launch a set of policies, known as the Washington Consensus, which was first presented in 1989. The reforms introduced by the Institute for International Economics include "deregulation, privatization, currency devaluation, social spending cuts, lower corporate taxes, export driven strategies, and removal of foreign investment restrictions" . More, "these loans are only granted when the countries agree to the adoption to a comprehensive programme of macro-economic stabilization and structural economic reform."

This point of view explored functions for agencies such IMF and World Bank would discussed at last part of this essay.

The World Bank was founded at the Bretton Woods Conference in 1944. The bank was first known as the International Bank of Reconstruction and Development. Their founding mission was to help countries during a post-war World War II era rebuild and reconstruct. They did this by providing loans to countries who had been destroyed during wars. Their first loan was made in 1947 to France to rebuild following World War II ("World Bank Group"). The World Banks’s mission eventually evolved to eliminating poverty globally. The social component of their new mission is was sets them apart from the International Monetary Fund. With the change of their mission the objectives of their loan also changed. “Development projects reflected people-oriented objectives rather than exclusively the construction of material structures. Projects related to food production, rural and urban development, and population, health and nutrition were designed to reach the poor directly.” ("World Bank Group"). These loans have low interest rates and were made to facilitate social development in third world countries and help them succeed in the long run. The Bank is headquartered in Washington D.C and has always had an American serve as president of the bank (Iyer). Major decisions for the Bank are made by the Board of Governors and the Board of Executives ("World Bank Group").

1.The international financial institutions (IFIs) are central pillars and the architects of the global economy. The world bank and IMF were founded and funded by the United states after the second world war to build shattered world economy after the war and great depression of the 1930s (socialist alternative,). The creation of the IFIs was to bring about a global economy after the “isolation economy” which some argue brought about the Second World War. The IFIs were to help the economy of the less developing countries (LDCs) to bring about growth and development, a phenomenon known as globalization.

The debt crisis in Latin America of 1980s let IMF (International Monetary Fund) and WB (World Bank) to think about solutions for the indebted governments to maintain economic stabilization and issue even more loans to repay existing debts and avoid international banking crisis. The policy set the preconditions for the borrower governments to earn credit from WB and IMF, named after Washington Consensus. It required governments to liberalize trades and open markets, change state-owned industries to private-owned ones, and let FDI freely